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SEC alleges accounting fraud at Utah software firm

WASHINGTON, July 15 (Reuters) - The Securities and Exchange Commission said on Monday that it sued Intelliquis International Inc. <INTQ.PK>, accusing the software company and current and former officers of accounting fraud.

Intelliquis overstated revenue for fiscal 1998 and 1999 by $3.2 million and net income by $1.7 million, according to a lawsuit filed Friday in federal court in Salt Lake City, Utah.

The complaint names the Draper, Utah-based company's current President Mark Tippets, former Chief Financial Officer David Jones, and former auditor Kevin Orton.

Tippets, who was the company's vice president of marketing and sales, also was accused of knowing that the company was improperly recognizing revenue.

The SEC said it was seeking disgorgement, monetary penalties and bars for officers and directors from holding such positions.

It is also seeking a $110,000 penalty against Orton, who is currently serving a nine-year prison sentence for an unrelated securities fraud case also involving wire fraud and racketeering.

An attorney representing Intelliquis and Tippets was not immediately available for comment. Jones and Orton did not have attorneys.

07/15/02 15:50 ET